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25-11-2023 | Original Research

Effect of FinCredit on income inequality: the moderating role of financial inclusion

Authors: Xuan T. T. Pham, Thu B. Luu

Published in: Review of Quantitative Finance and Accounting

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Abstract

This paper examines the direct effect of FinCredit on income inequality and the moderating effect of Financial Inclusion. Using a dual-process variable selection approach, we develop an optimal model to test two hypotheses and explore how FinCredit influences direct and indirect income inequality. Our study has made a pioneering contribution to the literature by identifying the direct positive impact of FinCredit on income inequality, which previous research had not yet revealed. Additionally, we have discovered new evidence on the crucial role of Financial Inclusion in enhancing the positive effects of FinCredit on reducing income inequality. We provide reliable scientific empirical evidence that clarifies the confusion surrounding fintech credit and encourages its development. Practical managerial implications can be inferred from the moderating role of financial inclusion on the positive effect of fintech credit on income inequality. These results have significant policy implications for promoting FinCredit and Financial Inclusion to reduce income inequality in the era of digital transformation.

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Metadata
Title
Effect of FinCredit on income inequality: the moderating role of financial inclusion
Authors
Xuan T. T. Pham
Thu B. Luu
Publication date
25-11-2023
Publisher
Springer US
Published in
Review of Quantitative Finance and Accounting
Print ISSN: 0924-865X
Electronic ISSN: 1573-7179
DOI
https://doi.org/10.1007/s11156-023-01226-4